(3-2a MT) A chemical factory is located next to a farm. Airborne emissions from the chemical factory damage crops on the farm. The marginal benefits of emissions to the factory and the marginal costs of damage to the farmer are as follows: Quantity of emissions Marginal benefit to factory ($) Marginal cost to farmer ($) 500 100 350 100 150 200 270 240 210 15 200 250 30 45 300 180 120 60 75 350 400 90 90 60 450 30 500 0 Suppose there are no laws preventing the chemical factory from emitting pollution, and the farmers and factory are unable to negotiate. How much pollution will the factory emit? 105 120 135

(3-2a MT) A chemical factory is located next to a farm. Airborne emissions from the chemical factory damage crops on the farm. The marginal benefits of emissions to the factory and the marginal costs of damage to the farmer are as follows: Quantity of emissions Marginal benefit to factory ($) Marginal cost to farmer ($) 500 100 350 100 150 200 270 240 210 15 200 250 30 45 300 180 120 60 75 350 400 90 90 60 450 30 500 0 Suppose there are no laws preventing the chemical factory from emitting pollution, and the farmers and factory are unable to negotiate. How much pollution will the factory emit? 105 120 135

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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